UBS Asset Management launches the first sustainable UCITS ETF covering global small cap stocks
UBS Asset Management (UBS AM) has launched a sustainable ETF tracking the MSCI World Small Cap SRI Low Carbon Select 5% Issuer Capped index.
The ETF is designed to provide exposure to companies with the strongest sustainability profiles from the MSCI World Small Cap universe. It applies strict screening encompassing norms-based exclusions (e.g. UNGC violations), values-based exclusions (e.g. tobacco, controversial weapons) as well as climate-related exclusions (e.g. thermal coal, oil & gas, highest emitters) that substantially reduce its carbon footprint. The index utilises a best-in-class ESG approach selecting the highest ESG-rated stocks within each sector with the aim of reaching a 25 per cent market cap coverage of the MSCI World Small Cap index.
The resulting ESG characteristics qualify the ETF as an Article 8 product under the European Union's Sustainable Finance Disclosure Regulation (SFDR).
Clemens Reuter, Global Head of ETF & Index Fund Client Coverage at UBS Asset Management, says: “Sustainability is a key focus area for UBS AM and over the past 10 years we have built a strong track record of managing SRI ETFs. This latest solution provides investors with the opportunity to gain global developed small cap exposure, together with a strong sustainability profile.”
UBS AM offers a wide range of sustainable ETFs with over USD32 billion in AuM in Article 8 and 9 ETFs. The UBS ETF (IE) MSCI World Small Cap Socially Responsible UCITS ETF is available in two share classes. Listings will be across key European exchanges, including LSE, Xetra, Borsa Italiana and SIX Swiss Exchange.